Using federal research grant funds for unapproved purposes is federal grant fraud. Federal research grant money are typically required to be used for a specific purpose. In other words, many federal research grants require that its funds be used for a specific purpose – for example, to study a specific disease. As a result, research institutions are prohibited from using federal grant money, awarded to research a designated subject area, on other research not approved by the federal government in the research grant award. Use of research grant funds for purposes not approved in the federal grant award may be federal grant fraud and constitute a false claim under the civil False Claims Act.

In addition, the use of federal grant money for personal purposes is federal grant fraud. Such a federal grant scam will result in liability under the civil False Claims Act.

For example, recently Northwestern University agreed to pay nearly $3 million to the United States to settle a whistleblower action filed under the civil False Claims Act lawsuit alleging that Northwestern permitted one of its researchers to spend grant funds on goods and services that did not meet the National Institute of Health’s and the government’s research grant guidelines. The whistleblower’s complaint alleged that the University engaged in federal grant fraud by authorizing employees to use federal research grant money on items that were for the personal benefit of the federal grant’s principal investigator and his friends and family.

No Fees Without Recovery

Ross M. Wolfe and the Weiser Law Firm litigate whistleblower lawsuits on a contingent fee basis, so whistleblowers do not pay attorneys’ fees or court costs unless there is a recovery.

Please contact Ross M. Wolfe if you would like to speak with a whistleblower attorney for more information about the whistleblower process, Federal Grant Fraud, the use of federal grant funds for improper purposes or to schedule a confidential free consultation to discuss your potential case.